FSC Files for Bankruptcy, Announces Plan to Sell Assets to Maine Company

FSC Paper Co. entered an agreement to sell its assets to an entity controlled by Madison Paper, Madison, Maine. Madison Paper is an affiliate of Myllykoski Corp., a Finnish-based company. FSC Paper also announced that to complete the sale the company, it filed for Chapter 11 Bankruptcy Protection with the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division. According to a release by the company, while under the jurisdiction of the court FSC will operate its business as a debtor in possession. The mill, located in Alsip, Ill., is a producer of newsprint. It is a large consumer of recovered fiber from sources in the Chicago area.